Agriculture, Agribusiness and Climate Change
Issues for consideration
Introduction
South Africa faces many major challenges, one of which is to face up to the reality of climate
change. As countries are seeking to meet in Copenhagen and negotiate binding climate
change targets, the contribution that agricultural production makes to anthropogenic
greenhouse gas emissions is increasingly coming under scrutiny. There is therefore a clear
need to find cost-effective ways to address agricultural emissions. This needs to be done in
a way that does not compromise other objectives, such as food security, competitiveness
and poverty alleviation. At the same time, climate change will have significant impacts on
agriculture and agribusiness, calling for an effective adaptation strategy in addition to
mitigation policies. The negative effects of global warming, such as heat waves, storms,
floods, changes to rainfall pattern, water availability in water-stressed areas and soil
degradation, have potentially major implications for life essentials like food, water, land and
the environment.
Agribusiness is committed to playing its role in addressing these major challenges, and
many companies in South Africa and worldwide have already taken considerable action. In
the ABC’s view, the respective and relevant Portfolio Committees can and should play an
important role in developing understanding of the complexity and scope of the challenge,
fostering dialogue, ensuring thorough analysis on climate change mitigation and adaptation
options and formulating fact-based policy recommendations.
An urgent need for mitigation
Agriculture is a major source of global greenhouse gas emissions accounting for over 10%
of global anthropogenic emissions, in particular in the areas of methane and nitrous oxide.
Without abatement measures, emissions are likely to climb, among others due to population
growth and changing food consumption patterns. In order not to compromise other key
challenges, such as global food security, it is essential to look for “win-win policies”.
Efficiency and cost-effectiveness of measures should be key considerations for policy
makers. Significant emissions reductions and priority focus should also be sought in sectors,
e.g. coal-fired electricity generation, where abatement is more cost-effective than compared
to other sectors.
Possible mitigation measures include a wide range of issues, such as improved farming
techniques, using “cleaner” energy, carbon sinks, etc. However, many mitigation options
entail additional costs to farmers, calling for cost-effectiveness to be given the highest
attention. In the ABC’s view, innovation will need to play a key role for mitigating emissions
from agriculture. Innovation should be defined broadly, i.e. not only related to technology, but
also services, farming practices and behaviour along the supply chain. In this context, the
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spread and adoption of technology and innovative approaches needs to be given the
highest attention.
Considering both adaptation and mitigation
All climate-sensitive systems of society and the natural environment, including agriculture,
forestry, water resources, human health, coastal settlements, and natural ecosystems, will
need to adapt to a changing climate or possibly face diminished productivity and health.
Some degree of future climate change will occur regardless of how stringent future mitigation
policies will be. Adapting to or coping with climate change will therefore become necessary
in certain regions and for certain socioeconomic and environmental systems. Adaptation
options in agriculture can involve a range of actions, such as investment in flood protection,
planting different crops, early warning systems, etc. They need to include actions by
producers, industry and policy makers. However, adaptation alone is not expected to cope
with all the projected effects of climate change, and especially not over the long term as
most impacts increase in magnitude.
Both mitigation and adaptation will need to be considered. Adaptation to climate change,
which is particularly important in some developing countries, is now recognized as a
complementary response to mitigation strategies. Particular attention must be paid to the
interactions between climate change, energy and water, which are linked in many ways.
One must emphasize the importance of the private sector in adaptation. Business
investment, know-how and technology will be essential to respond to the challenge of
adapting to climate change. Furthermore, business has experience in accounting for risk in
long-term planning and investments and could share best practice in this area. Already
small changes in climate change can have significant impacts on agricultural productivity.
Current differences in crop productivity between different areas are likely to increase under
climate change. Preparing agriculture for adaptation should therefore go hand in hand with
pro-active mitigation measures. Research is already being carried out in order to improve
seed resistance to drought, heat and higher levels of water and soil salinity, as well as to
diseases and pests. For example, genetically engineered crops, which are designed to make
efficient use of scarce resources like water and nutrients and which contribute to higher
yields and better product quality, can lead to savings in the area of water, soil, and energy,
thereby contributing to the development of best practices for environmental sustainability.
Innovation to address climate change
In this complex and dynamic scenario, where growing population levels and correspondingly
growing demand for food and nutrition must be considered as a crucial aspect, a policy
framework that fosters and adequately protects and rewards investment in research,
innovation and technology is vital to successfully address the challenges posed by climate
change. Innovation will play an essential role in both mitigation of emissions and adaptation
to climate change as related to agriculture. Yield-increasing technologies, management
practices and approaches can provide a significant contribution to environmental
preservation by reducing demand for uncultivated land. Innovation and the spread of
innovative technologies require, among others, open markets, an enabling regulatory
framework and the effective protection of intellectual property rights.
Crop Development Investment in new crop varieties to increase tolerance to water and heat
stress will be essential. For example, the biotechnology sector can play a major part in
helping to address the negative effects and consequences of climate change, especially with
respect to greenhouse gas reduction, crops adaptation, and the protection of and increases
in yield with less surface.

Crop Protection
Effective harvest protection from weeds, pests and diseases is crucial to increasing
productivity. The production of fruit and vegetable crops, vital for healthier global diets, is
especially threatened by pests’ pressure and other climate change-related effects. The
responsible use of crop protection products as well as properly implemented integrated pest
management strategies are and will remain important instruments for combating pests and
preserving harvest and food supply.

Fertilizers
While fertilizer production makes a contribution to increasing greenhouse gas emissions,
major research is being carried out by industry to minimize fertilizer-related greenhouse gas
emissions. In addition, appropriate and responsible use of fertilizers and sustainable
nutrients can make a contribution to helping plants capture more carbon, fostering higher
yields and slowing the decline of soil organic matter.

Carbon Sequestration
The process of transferring atmospheric CO2 into soil and biotic pools can enhance soil
quality, increase agronomic productivity, improve quality of natural waters, and lower rates of
anoxia (decrease in the level of oxygen) or hypoxia (dead water) in coastal ecosystems.

Soil Conservation
Conservation Agriculture techniques, such as low or no-till agriculture, made possible
through the use of herbicides, prevents wind and water erosion and loss of ground moisture,
improves soil biodiversity, increases soil fertility, and reduces carbon emissions. In addition,
by limiting soil disturbance and promoting a permanent soil cover, conservation agriculture
can contribute to limiting emissions from agriculture by increasing soil carbon content and
preventing erosion.

Adjustments in Farm Practices:
The following soil and crop technologies can increase soil carbon sequestration: No-till (NT)
farming with residue mulch and cover cropping, integrated nutrient management (INM),
which balances nutrient application with judicious use of organic manures and inorganic
fertilizers, various crop rotations (including agro forestry), use of soil amendments (such as
zeolites, biochar, or compost), and restoration of degraded or desertified soils, which can be
achieved through afforestation and reforestation. In addition, the development of prediction
tool models and on-site diagnostics can optimise farm practises by minimizing the inputs
(fertilizer, water, agrochemicals) and maximising the yield.

Adopting Good Agricultural Practices and New Technologies
The technology and knowledge is available to achieve significant reductions. For example,
by improving the management of operations using Good Agricultural Practices, one can
reduce energy consumption and decrease direct GHG emissions in the natural gas-based
ammonia production, which carries the largest share of the industry’s emissions.

Insurance Mechanisms
Innovative insurance mechanisms should be explored to compensate rural communities and
smallholder farmers in case of natural disasters. Africa is particularly vulnerable to climate
change because of its high proportion of low-input, rainfed agriculture, compared with Asia
or Latin America. Exposure to rainfall variability also extends to livestock, which mostly
depend on range and grasslands that are affected by environmental shocks, such as climate
change.

Innovative Water Management
Several steps can be taken to improve water management and water quality in the context of
climate change and increasing strains on water resources. This will be to the overall benefit
of agricultural production. For example, improvements can be made by transferring and
implementing irrigation technology (such as localised irrigation systems, sensors to avoid
over-irrigation, etc.) and rainwater harvesting, while crop technology to improve crops’ ability
to adapt to changing soil moisture conditions will be essential. At the same time, reaching
innovative solutions for water financing and policy-making will be important for sustainable
water management. Re-use of urban wastewater and alternative water supplies (e.g.
industrial wastewater recycling) for agricultural production can in cases also help to reduce
water wastage.
Implications of Water Resources
Climate change will affect the availability and use of water, and will amplify the competition
for water resources. The climate-related impacts on hydrological systems are expected to
increase, leading to high levels of uncertainty in water availability, and some regions will be
far more affected than others. This will have a profound impact on agriculture, as
approximately 60% of global freshwater is used for agriculture in South Africa.
At the same time, population growth and changing food consumption patterns are expected
to put further strain on water resources, as a doubling of food production is expected in the
next 40 years and global demand for meat is expected to increase by 50% between 2009
and 2025. This will intensify the challenges facing water management in many countries,
particularly in developing countries where agriculture is often one of the largest sectors of
national economies. Addressing the water challenge will be of fundamental importance in
addressing challenges to agriculture in the context of climate change1.
Sustainable Agriculture and Capacity Building
Sustainable farming meets environmental, economic, and social objectives simultaneously.
Economic sustainability requires selecting profitable enterprises and undertaking
comprehensive financial planning. Social sustainability involves keeping money circulating in
the local economy, and maintaining or enhancing the quality of life of the farm family.
Environmental sustainability involves keeping the four ecosystem processes (effective
energy flow, water and mineral cycles, and viable ecosystem dynamics) in good condition.
Every small decision can make a difference and contribute to advancing the entire system
further on the "sustainable agriculture continuum." For example, promoting the responsible
use of agro-chemicals like modern synthetic pesticides, herbicides and other crop protection
products can help propagate sustainable agriculture practices and address the challenges
posed by climate change.
In this respect, capacity building is an essential overarching requirement, and generic
capacity building at all levels is crucial. However, in particular in countries where agriculture
is a predominant sector, generic capacity building has to go hand in hand with more targeted
capacity building for science and technology in the agriculture sector to achieve tangible
outcomes, in particular in high-priority areas. The process of capacity building must be
complemented by improved access to essential information, such as agronomic information,
price and weather updates to allow farmers to apply their knowledge and support their
capacity. As losses to the environment can be triggered by unbalanced, irresponsible use of
growth agents, fertilizers and excessive nutrient application, it is extremely important that
farmers be taught how to implement sound agro-ecosystem management measures by
means of targeted capacity building programmes. Educating farmers about technologies and
practices for sustainable agriculture will therefore be essential.
World Economic Forum Water Initiative discussion draft on: “The bubble is close to bursting: A forecast of the main
economic and geopolitical water issues likely to arise in the world during the next two decades” – January 2009 – see
http://www.weforum.org/pdf/water/WaterInitiativeFutureWaterNeeds.pdf .
1
Public-Private Partnerships
As mentioned above, capacity building will be a key requirement for addressing climate
change. In particular in developing countries, where agriculture is a predominant sector,
generic capacity building has to go hand in hand with more targeted capacity building for
science and technology. Public-private partnerships can play a key role in this area. The
public-private partnership model has been applied to help local governments and private
businesses combine efforts and expertise to fight climate change and promote
environmental sustainability. While each public-private partnership is unique, they need to
be based on several principles: shared goals, shared and complementary resources, and
shared risks and benefits.
Dialogue and partnership are important to increase the understanding of complex issues,
such as technological change and raise awareness of the need for a broad base of action
that needs to involve all partners. Public-private partnerships can also boost much-needed
investment for improving sustainable agriculture. We encourage policy makers to
facilitate business participation and recognize voluntary partnerships as an effective
means to address climate change challenges.
A Role for Parliament
Agriculture directly impacts the climate and is impacted by climate change. It should
therefore be given due attention, both with regard to mitigation and adaptation, which should
be closely linked. Further research is needed to more fully incorporate climate change
considerations in agriculture. Such areas for further research include: promotion of costeffective adaptation frameworks, assessment of mitigation options, promotion of innovation
to address climate change, and changes in farming practise. Given the potential cost
burden of mitigation and adaptation policies, it is essential to keep an economic focus
in mind when seeking for environmental improvements.
References:
1. Business Industry Advisory Council (BIAC): Climate Change and Agriculture Draft.
October 2009.